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Gofore Plc: Gofore is looking into the possibility of divesting its UK subsidiary

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GOFORE PLC COMPANY ANNOUNCEMENT 14 JANUARY 2020 AT 12.00

Gofore is looking into the possibility of divesting its UK subsidiary

Gofore has evaluated the options for its UK subsidiary. Due to the weak market outlook and unprofitable business operations, Gofore is analyzing the option for divesting its subsidiary’s operations in the UK. This may mean closing the business of the subsidiary. The net sales of the subsidiary clearly weakened in 2019, remaining at approximately EUR 1.3 million, which represents approximately two percent of Gofore’s net sales. Net sales for the first half of the year were EUR 1.07 million and EUR 0.27 million for the second half. The business has been unprofitable. At present, the subsidiary has 14 employees.

“In 2019, the net sales targets set for the UK subsidiary did not materialize and the weakening net sales intensified as the year progressed. We have mainly focused on internationally operating customers, working on product development, whose investments have now clearly decreased. The market outlook for our customer base is weak. As an agile company, we have to be able to respond to new opportunities as well as negative developments in our target markets”, comments CEO Mikael Nylund.

In the UK, an employee consultation will be initiated with regards to the possible closing of the business. The consultation is expected to be completed during January 2020.

Figures presented in this company announcement are unaudited.

Gofore has reported about the situation in the UK business in the business review for September 2019, dated 11 October 2019.

Further enquiries: 
Mikael Nylund, CEO, Gofore Plc 
tel. +358 40 540 2280 
mikael.nylund@gofore.com
   
Certified Adviser: Evli Bank Plc, tel. +358 40 579 6210 

Gofore Plc is a Finnish digitalisation specialist with international growth plans. We’re made up of some 580 people across Finland, Germany, Spain, United Kingdom and Estonia – top experts in our industry who are our company’s heart, brain, and hands. We use consulting, coding and design as tools to incite positive change. We care for our people, our customers, and the surrounding world. Our values guide our business: Gofore is a great workplace that thrives on customer success. In 2019, our net sales amounted to EUR 64.1 million. Gofore Plc’s shares are quoted in the Nasdaq First North Growth Market Finland. Learn to know us better at www.gofore.com.

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